Japan economy

Bank of Japan deputy governor says rate hikes likely to continue

[TOKYO] Bank of Japan Deputy Governor Ryozo Himino said on Monday the central bank is expected to gradually shift to a more neutral monetary policy stance by continuing to raise interest rates.

The S&P Global Japan Manufacturing PMI rose to 53.0 in February, up from January’s 51.5, marking the biggest expansion since May 2022 and inching up from the flash reading of 52.8.

Japan’s factory activity hits near 4-year high in February: PMI

New export business expanded at the fastest rate since June 2021

The Tokyo CPI report is a leading indicator for national price trends.

Tokyo CPI cools below Bank of Japan’s target for first time since 2024

The central bank has already said that inflation is likely to ease below its 2% target in the first half of this year

The increase in the services producer price index, which tracks the price companies charge each other for services, followed a 2.6 per cent gain in December.

Japan’s services inflation steady, signals wage-driven price pressure

The Bank of Japan has signalled its readiness to keep hiking borrowing costs if prices continue to rise

Ueda had characterised the meeting last Monday as a general exchange of views on economic and financial developments.

Japan PM Takaichi voiced concern to BOJ's Ueda over further rate hikes

[TOKYO] Japanese Prime Minister Sanae Takaichi conveyed her reservations about further interest rate hikes when she met with Bank of Japan Governor Kazuo Ueda last week, the Mainichi daily reported on...

The year-on-year increase in the core consumer price index, which excludes volatile fresh food costs, matched a median market forecast and slowed from a 2.4% gain in December.

Japan’s core inflation slows to 2-year low, complicates BOJ rate-hike timing

A separate index seen as a better indicator of underlying inflation also falls, but remains well above central bank’s 2% target

The S&P Global flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to 52.8 in February from 51.5 last month, marking the strongest growth since May 2022.

Japan’s factory activity expands at fastest pace in four years: PMI 

Strong overseas demand helped drive the fastest pace of growth in new export orders in eight years

The balance of reserves financial institutions hold with the Bank of Japan currently stands at around 454 trillion yen.

Japan may face upheaval of funds when BOJ hikes rates to 1%, economist says

The markets are pricing in the chance of another hike as soon as March or April

Japan’s exports have been recovering after an initial blow from US tariffs dragged down US shipments in the July to September quarter.

Japan’s exports mark biggest jump in three years on pre-Chinese New Year shipments

Analysts expect the Japanese economy to gather momentum with the help of domestic drivers such as private consumption

A quarter of Japan’s total spending is funded by debt, of which roughly half is held by the BOJ after years of heavy money printing to reflate the economy.

IMF urges Japan to keep raising rates, avoid reducing sales tax

With inflation exceeding its 2% target for nearly four years, the BOJ has signalled its readiness to keep hiking rates